Motley Fool analysts suggest that if the Federal Reserve raises interest rates, three Vanguard ETFs to watch are the Vanguard Value ETF (VTV), the Vanguard High Dividend Yield ETF (VYM), and the Vanguard Short-Term Treasury ETF (VGSH).
Analysis indicates that due to the war in Iran and the ensuing inflation, the market currently anticipates the Federal Reserve may raise interest rates before year-end. In an environment of rising interest rates, value stocks and high-dividend stocks typically perform well, while short-term Treasury ETFs can offer meaningful yields and avoid most interest rate sensitivity. VTV has outperformed the Vanguard S&P 500 ETF by over 7 percentage points this year, VYM has a current distribution rate of 2.2%, and VGSH has a yield of 4.3%.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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